Flush with funds and raring to expand, at least 11 startups will be shelling out pay packages in excess of Rs 20 lakh to graduates of the best engineering colleges.Sreeradha Basu | ET Bureau | August 12, 2015, 08:02 IST

Flush with funds and raring to expand, at least 11 startups will be shelling out pay packages in excess of Rs 20 lakh to graduates of the best engineering colleges.MUMBAI: Flush with funds and raring to expand, at least 11 startups will be shelling out pay packages in excess of Rs 20 lakh to graduates of the best engineering colleges beyond the Indian Institutes of Technology (IITs) such as the Birla Institute of Technology and Science (BITS) in Pilani this year.

The median salary at BITS Pilani was around Rs 7.5 lakh last year.

Zomato, Practo, Endurance, InMobi, Code-Nation, Housing, Unicommerce, Sprinklr and Codigami are among those lining up to attract talent from these campuses, with salaries that rival and even exceed some of the traditional top recruiters.

According to campus sources, only three startups offered Rs 20 lakh-plus packages last year. That number is almost quadrupling, with some startups raising offers and new ones entering the fray.

These startups are offering more compensation than well-established companies. Popular recruiters Texas Instruments and Qualcomm, for instance, pay in the region of Rs 14-15 lakh, while Microsoft offers Rs 18 lakh for domestic postings. Visa, which hired around 250 students across engineering campuses last year, is paying Rs 18 lakh for Indian roles.

Campus sources said the presence of so many cash-rich startups will spark a fierce talent war with traditional, well-known recruiters for the best and brightest among the graduating batch of 2016.

"A number of bright students who would otherwise get into traditional development roles in branded companies, get swayed by the compensation and join these startups," said G Balasubramanian, chief placement officer, India and Dubai, BITS Pilani University. But it’s not just about the money, it’s got a lot to do with changes in outlook as well.

"This generation’s risk-taking appetite is several notches above those some years ago," Balasubramanian said. "They want to grow fast, grow along with the company and if for some reason it goes down, they are willing to take that risk. Then again, these roles offer scope for 360 degree movement."

The lure of big salaries, however, can’t be denied. Endurance has already visited campuses, offering Rs 26 lakh for domestic posts and $60,000 for international posts. Several other startups scheduled to arrive on campus are paying upwards of Rs 20 lakh. Some including the likes of Oku Tech, HealthKart and Grofers, are making their debut at these engineering college placements. Campus hiring for most engineering colleges begin in early August while at the IITs it starts in December.

There are several other startups that are paying much more than the median. For instance, warehousing automation startup Grey Orange, which raised Series A funding from Tiger Global and Blume Ventures last year, is paying Rs 14-16 lakh. Gurgaon-based Oku Tech is giving Rs 18 lakh and Healthkart, an online health products store, is paying Rs 19 lakh. Bigger ecommerce names such as Flipkart are paying Rs 19.75 lakh while Amazon is payingRs 25.5 lakh.

"Startups are more popular than ever before," said Rajeev Tripathi, professor in charge, department of training and placement, Motilal Nehru National Institute of Technology (MNNIT), Allahabad. "Even new recruiters among them are paying around Rs 14-18 lakh."